Staff Reduction in Force UPPS No. 04.04.14
Issue No. 2
Effective Date: 02/20/2009
Review: August 1 E4Y
01. POLICY STATEMENTS
01.01 This UPPS describes the procedures for a reduction in force (RIF) for regular staff employees. This policy does not apply to non-student, non-regular employees.
01.02 An effective RIF policy will retain the most productive employees in spite of adverse economic conditions while ensuring compliance with laws pertaining to equal employment.
The university will make reasonable accommodation in RIF decisions without regard to an employee’s race, color, sex, religion, national origin, age, sexual orientation, veteran’s status, physical or mental disability.
The university will not use a RIF, by definition non-disciplinary, as a substitute for terminating an employee for disciplinary reasons.
01.03 The Faculty Handbook contains the RIF policy for faculty. The Provost will determine faculty RIFs in other circumstances.
01.04 The President must approve any action taken under this policy or any exception to this policy.
02.01 The following definitions describe the terms used in this UPPS.
a. Reduction in Force (RIF): A reduction in the number of staff employees as needed and directed by university administration.
b. Recall: The non-competitive process in which the university re-hires former staff employees terminated by a RIF, during the first eighteen months after termination.
c. Re-hire: A competitive process in which the university re-hires a former employee following a RIF, under normal university posting procedures.
d. Reassignment: A non-competitive offer to transfer an employee to a vacant position in lieu of a RIF termination.
e. Organizational Unit: A division, department, or other organizational unit designated by the appropriate vice president.
03. PROCEDURES FOR PLANNING A RIF
03.01 The appropriate account manager and vice president should consider these steps before initiating a RIF:
a. Document the financial conditions necessitating the RIF.
b. Identify the staff reduction goals in terms of labor savings and the number of affected university positions.
c. Identify the job functions and skills essential to operations following the RIF.
d. Review the university’s and each division’s strategic plan.
e. Set a timetable for carrying out the RIF.
f. Check state laws regarding payment of wages, benefits (possible COBRA and unemployment and severance), and personnel record access.
g. Consult Human Resources.
03.02 As an alternative to a RIF, university administration may consider reducing the salaries of employees subject to the RIF, along with other options.
04. SELECTION CRITERIA OF EMPLOYEES FOR RIF
04.01 The vice president and individual account manager may find it necessary to reduce the number of employees at the university due to budgetary constraints or to meet shifting operational needs. When implementing a RIF, the university will prioritize functions based on the effect that reduction or elimination will have on the mission and goals of the university.
Prior to implementing a RIF, the divisional vice president and account manager will assess their work force and select the functional areas for the RIF. In all instances, they will use university needs as the primary consideration when determining the areas selected for the RIF.
04.02 Management will designate positions subject to the RIF except for positions with the same job title, same supervisor, in the same organizational unit.
Management will use two criteria when considering RIFs involving positions with the same job title, same supervisor, and in the same organizational unit (see definition in Section 03):
a. Job performance as documented by the average of the three most recent performance evaluations; and
b. years of service at the university.
The university will quantify these two criteria by a numerical score as noted below. Employees will receive a score for each criterion, with the employees scoring the lowest combined score being separated.
Example: Assignment of numerical score by criteria
Criteria A: Job Performance
Level (Avg. of last 3 performance evaluations) Score
Below Standard 0
Performance Appraisal Score: 301-350 30
Performance Appraisal Score: 351-400 40
Performance Appraisal Score: 401-450 50
Performance Appraisal Score: 451-500 60
Criteria B: Years of Service
1-5 years of service 10
6-10 years of service 15
11-15 years of service 20
16-20 years of service 25
21-25 years of service 30
26-30 years of service 35
31-35 years of service 40
Over 35 years of service 45
Example: This method applied to individual employees by organizational unit and job classification.
Accounting Clerk II: Accounting Department
Name of Employee Criteria Score
Employee A Job Performance (310) 30
Years of Service (6) 15
Employee B Job Performance (300) 20
Years of Service (5) 10
Employee C Job Performance (315) 30
Years of Service (5) 10
In the above examples, the university would select Employee B for the RIF.
EXCEPTION: In situations where more than one employee with the same title reports to the same supervisor but performs different functions requiring different skill sets relative to the ongoing essential needs of the organizational unit, management may retain the employee with the special skill set outside the provisions of a. and b. of this section. The President must approve any retention under this exception.
05. PROCEDURES FOR REDUCTION IN FORCE
05.01 The President must approve a RIF. Account managers will recommend to their respective vice president an area for consideration for a RIF. Each vice president will communicate their final recommendation to the President.
05.02 The appropriate vice president will identify all positions recommended for any RIF and ensure compliance with university policies and procedures. The appropriate vice president will notify Human Resources at least forty-five working days before the planned date of any RIF.
05.03 Human Resources will review any RIF selections in conjunction with the appropriate vice president prior to the implementation of a RIF and will notify the President and appropriate vice president of any problems related to the implementation of this policy as it pertains to a RIF.
05.04 The appropriate vice president will prepare the RIF notification to inform employees of the RIF.
05.05 The appropriate vice president will give affected employees at least thirty days’ notice using the Reduction in Force notification letter format (available under Human Resources Forms from the HR website) before the actual termination date. Human Resources shall then receive written notification of the name, ID Number, job title, home phone number and address of each employee selected for RIF in order to maintain a recall list and coordinate employee benefits.
05.06 Human Resources will complete an exit interview with the affected employee. During the exit interview, Human Resources will provide the employee with a packet of helpful information including instructions for applying for and receiving unemployment benefits and how to apply for Texas State and other public employer job vacancies.
06. EMPLOYEE OPTIONS
06.01 An employee who has received a notification of the RIF may elect one of the following options:
a. Accept the RIF status as of the effective date.
b. Submit a notice of resignation from employment effective no later than the RIF date.
c. Elect retirement, if eligible. (Retirement will waive eligibility for appeal or recall under this policy.)
d. Appeal the RIF through the complaint process found in UPPS No. 04.04.41.
07. BENEFITS ELIGIBILITY
07.01 When the university implements a RIF, it will apply the following rules to the affected individuals regarding their benefits:
a. Payment for all accrued vacation leave and, if applicable, FLSA overtime for classified employees.
b. The university will restore the sick leave balance at the time of the RIF if Texas State or any state agency or institution of higher education rehires the individual to a regular position within twelve months.
c. If allowed by COBRA regulations and the conversion provisions of the insurance policy, the employee may continue coverage in the group health and dental insurance plans. The employee must pay the total monthly premium for the coverage.
d. Time spent in a RIF status will not count toward total state service, state or university longevity, seniority or retirement.
e. The university will provide a prorated refund of parking and other fees that are normally prorated.
08. PROCEDURES FOR CONSIDERATION FOR RECALL
08.01 The recall applies
only to the specific person who was subject to the RIF, not to a
Human Resources will maintain a list of employees who have been separated under a RIF. Eligibility for recall consideration runs for a period of eighteen months from the date the employee was separated. Section 05.05 establishes the recall eligibility criteria. A recall under this policy provides for a non-competitive offer of reinstatement of an employee to their former position or a position with the same job classification.
If Human Resources cannot locate an employee, or if the employee declines the first two job offers, Human Resources will remove the employee’s name from the recall list. The employee will forfeit any remaining recall opportunities.
08.02 The university will pay recalled employees at the rate budgeted for the position.
09. PROCEDURES FOR CONSIDERATION FOR REHIRE
09.01 Under the rehire provisions, the university will fill each vacancy through its normal competitive hiring process.
09.02 The university will pay rehired employees at the rate budgeted for the position.
10. VETERAN’S PREFERENCE
10.01 If an account manager identifies a position held by an employee hired under a veteran’s preference for a RIF, the account manager must grant the veteran the preference to retain employment over other employees with the same job title reporting to the same supervisor, provided the preference conditions still apply.
11. REASSIGNMENT PROCEDURES
11.01 In lieu of a RIF, the appropriate vice president may offer to reassign an employee to another vacant position within the same division.
11.02 The university may offer reassignment at a position with either a higher, lower or equivalent pay plan minimum. The employee’s rate of pay will fall within the pay range for the position assigned.
11.03 An employee who accepts reassignment under this policy waives the right to appeal the action.
11.04 Employees who reject offers of reassignment may avail themselves of the options described in Section 07 or may subject themselves to recall or rehire as described in Sections 09 and 10.
12. PLACEMENT EFFORTS
12.01 The university will permit employees designated for RIF termination to use accrued vacation leave and compensatory time leave to interview for other jobs within the university and with other employers prior to the date of termination. Employees may also consult with Human Resources to identify comparable vacant positions within the university for which they may qualify. UPPS No. 04.04.11, University Classification and Compensation Policy, establishes the procedures the employee and hiring department must follow in order to transfer an employee to a vacant position.
14. REVIEWERS OF THIS UPPS
14.01 Reviewers of this UPPS include the following:
Director, Human Resources August 1 E4Y
University Attorney August 1 E4Y
Chief Diversity Officer and Director, August 1 E4Y
Equity & Access
Chair, Staff Council August 1 E4Y
15. CERTIFICATION STATEMENT
This UPPS has been approved by the following individuals in their official capacities and represents Texas State policy and procedure from the date of this document until superseded.
Director of Human Resources; senior reviewer of this UPPS
Vice President for Finance and Support Services